GM Prepping to Announce Closure of Pontiac
Okay, the economic situation was already pretty serious. Now it is really hitting big companies like General Motors, very hard.
General Motors is preparing to announce the closure of the Pontiac brand. Yes, that is right; there will be no more Pontiac. The announcement will be made as part of an updated viability plan to the U.S. auto task force.
Other automotive news sources have said that GM was considering to phase out the brand instead of sticking with the current plan to have it continue as a niche brand or marquee.
GM is barely holding on to its cash even with the $15.4 billion in U.S. government loans as part of the bailout. Original plans for GM included keeping the brands Buick, Chevrolet, GMC and Cadillac while selling off Hummer, Saturn and Saab.
[source: autonews]
President Obama Vows Not to Walk Away From Auto Industry
February 25, 2009 by Larry
Filed under Automotive, Featured, News
One of the highlights of the delivery that President Obama gave to the joint session of congress was a vow not to walk away from the automotive industry. The tone seemed directed at the American infrastructure of the automotive industry which directly includes the suffering Big 3.
The points that were brought out by autonews and others in the automotive industry were the positive inspirational parts of the speech saying, “We will rebuild, we will recover, and the United States of America will emerge stronger than before.” Then later a specific address was directed towards the automotive industry having an obvious effect on the economy where the President said, “As for our auto industry, everyone recognizes that years of bad decision-making and a global recession have pushed our automakers to the brink. We should not, and will not, protect them from their own bad practices. But we are committed to the goal of a re-tooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it. Scores of communities depend on it. And I believe the nation that invented the automobile cannot walk away from it.”
Big 3 Auto Bailout Rejected in Senate
Late Thursday the U.S. Senate rejected the emergency bailout bill that would have provided upwards of $14 Billion to the Big 3 Detroit automakers. Many were hopeful of that was to come of the bailout after it was passed by the U.S. House just two days ago. Now the outlook is grim for the big 3 GM may actually run out of cash by the end of this month while Chrysler may have it’s issues by March.
Other options that are being pushed through is the step to do a repeat vote when Congress comes back next year with new legislation. We will all have to sit back and see what takes place in this situation. Rest assured, we will all be keeping our eyes open on this one. Maybe bankruptcy is not such a bad idea after-all.
Work For $1 a year: Ford CEO Offers to work for $1
President and CEO of the Ford Motor Co., Alan Mulally, says he will work for $1 a year if they have to take from the government loan money. In addition, he said that they will continue to seek money from the government but they may not need it.
Talking about bold moves again here! Not only has this tid bit of news come out but they plan on putting the sugar on top by traveling to Washington D.C. in a new Ford Escape Hybrid instead of the private jet that all big 3 automaker CEO’s were highly criticized for during the last visit to D.C.
Below is an excerpt from the Associated Press regarding this “new deal” from the Ford CEO.
